It’s been a week since the Honourable Jim Flaherty gave us all a big gift in the Fall Economic Statement and I just have to point something out.
Jack Layton and every NDP pundit and MP have been prattling on and on about how we have missed a great opportunity and how the statement is giving big business a huge tax break.
Well let’s get some of the math straight. The total cuts in the statement are a whopping $60 Billion over 5 years and approximately $15 Billion of that was targeted at businesses. This means approximately $45 Billion was targeted at Canadians.
Considering over half of the about a quarter of the income taxes collected by our government are paid by corporations, they are actually getting the disproportionately low portion of the tax cut.
I think it is quite disingenuous of Mr. Layton to say that the government is giving big tax cuts to the banks and oil companies when the truth is obviously clear that the average Canadian is the one coming out ahead.
And taking into account the high value of the Canadian dollar, our businesses can use, and deserve, a break.
So hit the road Jack….
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“Considering over half of the taxes collected by our government are paid by corporations,”
What on earth are you talking about?
Total government revenues for the current year are projected to be $243.9B. Total corporate tax revenues are projected to be $41.5B.
http://www.fin.gc.ca/ec2007/ec/ecc2e.html
So, corporate taxes account for 17% of government revenue, but 25% of the tax cuts. In others word, corporate taxes account for a 50% larger share of the tax cuts than of total government revenue. And that’s using a six year cost average.
If you look at the cost once the the corporate tax cuts are fully phased in it’s even worst. In the final year of the Tory plan, corporate taxes account for 41% of the tax cuts–a 144% larger share of the tax cuts than of total government revenue.
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I stand corrected. Thanks for the link. By the way….
How much of the personal income tax collected comes from incomes paid by businesses?
How much of the GST paid is actually paid by businesses as opposed to citizens?
How much of the customs and import duties is paid by businesses?
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It is very misleading to say that these cuts really help big business. It should be a known fact, that a government cannot control who pays a tax any more than they can turn bronze to gold. For example, if corporate profits, account for say, 6% of a business’s income, then it is likely they will get about 6% of that tax break. The workers, who account for a vast percentage of a company’s income, will be the ones to benefit most, with higher wages. Also keep in mind that prices will drop as a result, due to more room for competitive pricing.
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Off-topic
Nepean-Carleton Conservative MP Pierre Poilievre is a guest panelist on the Federal Politics panel on CTS Michael Coren Show at 8pm Eastern today, November 8 (repeated tomorrow at noon).